Piro highlighted the positive trend in the real estate market since the start of the year, with the apartment segment showing the strongest recovery following the prolonged impacts of the COVID-19 pandemic. Searches and transactions for apartments have surged, with quarterly sales showing remarkable improvement.
Over the past two quarters, Hanoi's real estate market recorded 10,400 apartment transactions, an impressive 101% year-on-year increase, surpassing the total number of transactions for 2023. However, external factors, including demographic shifts and limited supply, are pushing apartment prices to new heights. Demand remains concentrated in the mid-range to high-end segments, particularly in integrated urban areas in the eastern and western regions of the city.
Looking ahead, Piro expected the mid-range segment to continue driving supply, with 13,460 units from eight new projects and subsequent phases of two integrated urban developments in western Hanoi in the remaining of 2024.
Hanoi’s ongoing infrastructure projects, including metro lines, and the new Land Law effective from August 1, 2024, are projected to further stimulate the market, with anticipated growth rates of 20-30% in the near future.
He attributed the market's recovery to rapid economic growth, supportive government policies, and effective credit control. Notably, the population growth indicates a strong demand for residential apartments.
Despite limited land supply and regulatory constraints, high-end and luxury apartments are also expected to draw investor interest, with the potential for high returns. Prices in the primary market are anticipated to continue rising by 5-10%, driven by the completion of projects boasting better construction quality, design, management and amenities.